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The Workplace
Closing the Pay Gap
by Liz Schmid |
Although the pay gap has
narrowed substantially, the difference is still pronounced.
Pay equity is required by law. The Equal Pay Act of 1963 prohibits unequal pay for equal
or "substantially equal" work performed by men and women. But law and reality
aren't always the same thing. According to the U.S. Department of Labor, women earned 75% as much as men in 1997.
Although the pay gap has narrowed substantially over the past 20 years (in 1979, women's
median earning were 62% of men's), the difference is still pronounced.
Some experts claim the wage gap exist largely because many women are in service, sales or
clerical jobs. Women choose these jobs because they allow work flexibility, part-time
opportunities and second incomes. But these jobs generally "require fewer
skills" and are therefore lower paid. The National Committee on Pay Equity reports
that more than 61% of women hold these types of positions.
Encouraging Signs
But there is some good news. When it comes to compensation for male and female executives,
large companies are closing the gap the fastest. And women at small and mid-sized
companies enjoy the most compensation equity, even though their pay gains lag behind their
big-company colleagues.
While experts are still reporting substantial pay differences between the sexes, in many
industries women are actually narrowing the pay gap substantially. Female engineers make
nearly 94% of what their male counterparts make, female college administrators make 96%,
and corporate lawyers 92%. Human resources, nursing, advertising and publishing are also
industries that fair well in pay equity.
Categories that lag behind in pay equity are accounting, financial services, sciences,
hospital management, and federal government jobs. Management and administrator positions
were among the worst offenders in pay equity, where women made only 66% of what their male
counterparts make.
Pay negotiation is an effective tool against inequity:
- Negotiate your pay when the job is first offered. That's when the boss is most unsure
whether you will accept the offer and s/he's hasn't seen any of your weak points. Try to
find out how raises work within the organization.
- Ask how much was budgeted for the position. An employer might low-ball you in response
to that question, but s/he would have to blatantly lie. (Not everyone is comfortable doing
that.)
- Bolster your argument for a raise with a simple chart, showing how you're earning less
than comparable employees in and outside the organization.
- When asked what you would like to make, don't pull any punches; give a number that's
high (but not unreasonable). It positions you as confident and powerful. Since you're not
saying, "Take-it-or-leave-it," there's little risk of the company retracting the
job offer.
Resources:
Reprinted with permission of CareerBuilder.com. CareerBuilder, Inc.
has emerged as the leading provider of E-cruiting (electronic recruiting) services with
the CareerBuilder Network, its pioneering model to provide employers with a choice of the
best career sites on the Web from a single vendor. The CareerBuilder Network is made up of
over 25 leading professional, broad appeal, diversity, and industry career centers.
WomensFinance Links:
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